Janet Yellen on Crypto: Skepticism, Regulation, and Treasury\'s Stance
U.S. Treasury Secretary Janet Yellen has consistently voiced skepticism regarding cryptocurrency and emphasized the need for robust regulation. Her concerns, articulated throughout 2025, highlight potential risks to the U.S. financial system and the necessity for Congressional action. This article provides a comprehensive overview of Secretary Yellen\'s views and actions regarding crypto.
Yellen\'s Concerns About Crypto Risks
As far back as , U.S. Treasury Secretary Janet Yellen was preparing to tell Congress that the crypto industry poses several potential hazards to the financial system, including the dangers of unregulated platforms and volatile digital assets. On , leading the Financial Stability Oversight Council, she addressed lawmakers about these risks. That same day, , it was reported that U.S. Treasury Secretary Janet Yellen will highlight the risks associated with crypto platforms and stablecoins and will urge Congress to pass legislation, according to statements released prior to her testimony.
The Need for Strong Regulation
Secretary Yellen has repeatedly called for a strong regulatory framework for cryptocurrencies. On , United States Treasury Secretary Janet Yellen stressed the importance of implementing such a framework during a G20 meeting. Further emphasizing this point, on , Treasury Secretary Janet Yellen said more government regulation is needed to police the proliferation of cryptocurrency and other digital assets and to ward off fraudulent and illicit activities.
Yellen\'s Statement on Crypto Market Developments
On , Secretary of the Treasury Janet L. Yellen released the following statement on the recent crypto market developments: "The recent failure of a major cryptocurrency exchange…" (The full statement is available on the Treasury Department website).
Crypto Turmoil and the Banking Sector
Despite the turmoil in the crypto market, Secretary Yellen noted on , that recent turmoil in the cryptocurrency market has not spilled over to the banking sector. However, she remained skeptical, highlighting the need for vigilance and proactive regulation.
Conclusion: A Call for Action
Janet Yellen\'s consistent messaging underscores the U.S. Treasury\'s serious concerns about the potential dangers of unregulated crypto assets. Her calls for Congressional action and a strong regulatory framework are essential to mitigating risks and protecting the U.S. financial system. Ongoing developments in the crypto space will undoubtedly keep this issue at the forefront of policy discussions.